Applications(b) Complaints alleging violation of Section 10, 15, or 20 shall be reviewedfiled bywithin the2 Departmentyears toafter determinethe whetherdate therethe isfinal causecompensation forwas investigation.due.

FailureComplaints ofshall abe hiringreviewed partyby tothe keepDepartment adequateto recordsdetermine orwhether providethere writtenis contractcause asfor requiredthe byDepartment thisto Actinitiate shallthe notprocess operateof asfacilitating athe barexchange toof ainformation freelancebetween workerthe filingparties. a complaint.

The Department shallis keepnot required to initiate an information facilitation process if either party to the namescontract has initiated a civil action in a court of freelancecompetent workersjurisdiction whoalleging area violation of this chapter or a breach of contract arising out of the contract that is the subject of anthe investigationcomplaint confidentialfiled untilunder suchthis timeAct, that10300SB2041sam001 disclosure-6- isLRB103 necessary30684 forSPS resolution58091 ofa anunless investigationsuch orcivil complaint.action has been dismissed without prejudice to future claims;

(c)or Eacheither freelanceparty workerto whothe filescontract has filed a completedclaim SB2041or -complaint 6before -any LRB103administrative 30684agency SPSunder 57150any blocal, compensationState, claimor applicationfederal law alleging a violationbreach of thiscontract Actthat oris athe rulesubject adoptedof thereunderthe shallcomplaint befiled providedunder withthis aAct, writtenunless description of the anticipatedadministrative processingclaim ofor thecomplaint complaint,has includingbeen investigation,withdrawn caseor conference,dismissed potentialwithout civilprejudice andto criminalfuture penalties,claims. and collection procedures.

EachFailure freelanceof workera andcontracting hisentity orto herkeep authorizedadequate representativerecords shallor beprovide notifiedwritten incontract writingas ofrequired anyby casethis conferenceAct beforeshall itnot isoperate heldas anda givenbar theto opportunitya tofreelance attend.worker filing a complaint.

(c) Each freelance worker andwho hisfiles a completed complaint alleging a violation of this Act or hera authorizedrule representativeadopted thereunder shall be notifiedprovided inwith writinga written description of anythe awardanticipated processing of the complaint, including notification to the contracting entity and collectionthe ofcontracting civilentity's penalties.opportunity to respond.

(d) The Department shallshall, havewithin the20 powerdays toof investigatereceiving anda attemptcomplaint equitablyalleging toa adjustviolation controversies between freelance workers and hiring entities in respect of compensation claims arising under this ActAct, andinitiate tothe thatinformation endfacilitation theprocess Departmentby throughsending the Directorcontracting orentity anynamed other person in the Departmentcomplaint designateda bywritten himnotice orof her, shall have the powercomplaint, toor administerby oaths,notifying subpoena and examine witnesses, to issue subpoenas duces tecum requiring the productionfreelance ofworker suchthat books, papers, records and documents as may be evidence of any matter under inquiry and to examine and inspect the sameDepartment aslacks mayjurisdiction relate to theinitiate questionsuch inprocess. dispute.

ServiceWhen ofthe suchDepartment subpoenasinitiates shallthis beprocess, madethe bynotice anyof sheriffcomplaint orshall: any person.

Any(i) courtinform in this State, upon the applicationcontracting ofentity thethat Departmenta maycomplaint compelhas attendancebeen offiled witnesses,alleging thea productionviolation of booksthis andAct; papers, and the giving of testimony before the Department by attachment for contempt SB2041 - 7 - LRB103 30684 SPS 57150 b or in any other way as the production of evidence may be compelled before such court.

The(ii) Departmentdetail maythe initiatecivil remedies available to a mediationfreelance conference.worker for violations 10300SB2041sam001 -7- LRB103 30684 SPS 58091 a of this Act by a contracting entity;

(e)(iii) Whereinclude reasonable cause exists to believe that a hiringcopy party is engaged in a pattern or practice of violations of this Act, the Attorneycomplaint; General may commence a civil action on behalf of the State in a court of competent jurisdiction.

Theand Attorney(iv) Generalstate maythat receivefailure injunctiveto relief,respond civilto penalties,the andcomplaint by the deadline established in paragraph (1) of subsection (e) creates a rebuttable presumption in any othercivil reliefaction deemedcommenced appropriatein byaccordance with this Act that the court.contracting entity committed the violations alleged in the complaint.

(f)The NothingDepartment in this Act shall besend construedsuch tonotice preventby anycertified freelancemail. worker from making complaint or prosecuting his or her own claim for compensation.

(e) Response.

(1) Within 20 days of receiving the notice of complaint, the contracting entity identified in the complaint shall send the Director one of the following:

(A) For a complaint under Section 10, a written statement that the freelance worker has been paid in full and proof of such payment.

(B) For a complaint under Section 10, a written statement that the freelance worker has not been paid in full and the reasons for the failure to provide such payment.

(C) For a complaint under Section 15 or 20, a defense against the alleged violation.

(2) If the contracting entity identified in the complaint does not respond to the notice within 20 days, such failure to respond creates a rebuttable presumption in any civil action commenced in accordance with this Act that the contracting entity committed the violations 10300SB2041sam001 -8- LRB103 30684 SPS 58091 a alleged in the complaint.

Within 20 days of receiving a written response, the Director shall send the freelance worker a copy of:

(A) the contracting entity's response;

(B) any enclosures submitted with the response;

(C) materials informing the freelance worker about the freelance worker's right to bring an action in a court of competent jurisdiction;

and (D) any other information about the status of the complaint.

(3) If the director receives no response to the notice of complaint within the time provided by subsection (a), the Director shall mail a notice of non-response to both the freelance worker and the contracting entity by regular mail and shall include with such notice proof that the Director previously mailed the notice of complaint to the contracting entity by certified mail.

Upon satisfying the requirements of this paragraph, the Director may close the case.

(f) Attorney General powers.

(1) Whenever the Attorney General has reasonable cause to believe that any person or entity is engaged in a pattern and practice prohibited by this Act, the Attorney General may initiate or intervene in a civil action in the name of the People of the State of Illinois in any appropriate court to obtain appropriate relief.

10300SB2041sam001 -9- LRB103 30684 SPS 58091 a (2) Before initiating an action, the Attorney General may conduct an investigation and may:

(A) require an individual or entity to file a statement or report in writing under oath or otherwise, as to all information the Attorney General may consider necessary;

(B) examine under oath any person alleged to have participated in or with knowledge of the alleged violation;

or (C) issue subpoenas or conduct hearings in aid of any investigation.

(3) Service by the Attorney General of any notice requiring a person or entity to file a statement or report, or of a subpoena upon any person or entity, shall be made:

(A) personally by delivery of a duly executed copy thereof to the person to be served or, if a person is not a natural person, in the manner provided in the Code of Civil Procedure when a complaint is filed;

or (B) by mailing by certified mail a duly executed copy thereof to the person to be served at the person's last known abode or principal place of business within this State or, if a person is not a natural person, in the manner provided in the Code of Civil Procedure when a complaint is filed.

The Attorney General may compel compliance with 10300SB2041sam001 -10- LRB103 30684 SPS 58091 a investigative demands under this Section through an order by any court of competent jurisdiction.

(4)(A) In an action brought under this Act, the Attorney General may obtain, as a remedy, monetary damages to the State, restitution, and equitable relief, including any permanent or preliminary injunction, temporary restraining order, or other order, including an order enjoining the defendant from engaging in a violation, or order any action as may be appropriate.

In addition, the Attorney General may request and the court may impose a civil penalty not to exceed $5,000 for each violation or $10,000 for each repeat violation within a 5-year period.

For purposes of this Section, each violation of this Act for each person who was subject to an agreement in violation of this Act shall constitute a separate and distinct violation.

(B) A civil penalty imposed under this subsection shall be deposited into the Attorney General Court Ordered and Voluntary Compliance Payment Projects Fund.

Moneys in the Fund shall be used, subject to appropriation, for the performance of any function pertaining to the exercise of the duties of the Attorney General, including, but not limited to, enforcement of any law of this State and conducting public education programs;

however, any moneys in the Fund that are required by the court or by an agreement to be used for a particular purpose shall be 10300SB2041sam001 -11- LRB103 30684 SPS 58091 a used for that purpose.

(g) Nothing in this Act shall be construed to prevent any freelance worker from making complaint or prosecuting his or her own claim for compensation.

(g)(h) Nothing in this Act shall be construed to limit the authority of the State's attorneyAttorney of any county to prosecute actions for violation of this Act or to enforce the provisions thereof independently and without specific direction of the Department.

SB2041 - 8 - LRB103 30684 SPS 57150 b Section 30.

(a) Any freelance worker not timely paid final compensation by a hiringcontracting partyentity as required by Section 10 shall be entitled to recover through a claim filed with the Department or in a civil action,action but not both, double the amount of any such underpayments, injunctive relief, and other such remedies as may be appropriate.

In a civil action for violation of Section 10, such freelance worker shall also be entitled to recover costs and all reasonable attorney's fees.

Civil10300SB2041sam001 complaints-12- LRB103 30684 SPS 58091 a A civil complaint alleging violation of Section 10 shall be filed within 32 years after the date the final compensation was due.

(b) Any freelance worker who was retained in violation of Section 15 despite the freelance worker's request for a written contract prior to commencing the contracted work as required by Section 15 shall be entitled to recover through a claim filed with the Department or in a civil action,action but not both, statutory damages of $500.

Civil complaints alleging violation of Section 15 shall be filed within 2 yearyears after the date the final compensation was due.

(c) Any freelance worker who is threatened, intimidated, SB2041 - 9 - LRB103 30684 SPS 57150 b disciplined, harassed, denied a freelance opportunity, or penalized by a hiringcontracting partyentity in violation of Section 20 of this Act shall be entitled to recover through a claim filed with the Department or in a civil action,action but not both, statutory damages equal to the value of the underlying contract for each violation of Section 20.

Criminal penalties.

In addition to the other remedies provided in this Act, any hiring party or any agent of a hiring party, who, being able to pay final compensation and being under a duty to pay, wilfully refuses to pay as provided in this Act, or falsely denies the amount or validity thereof or that the same is due, with intent to secure for the hiring party or other person any underpayment of such indebtedness or with intent to annoy, harass, oppress, hinder, delay, or defraud the freelance worker to whom such indebtedness is due, upon conviction, is guilty of:

(1) for unpaid final compensation in the amount of $5,000 or less, a Class B misdemeanor;

or (2) for unpaid final compensation in the amount of more than $5,000, a Class A misdemeanor.

Each day during which any violation of this Act continues shall constitute a separate and distinct offense.

Any hiring party or any agent of a hiring party who SB2041 - 10 - LRB103 30684 SPS 57150 b violates this Act a subsequent time within 2 years of a prior criminal conviction under this Section is guilty, upon conviction, of a Class 4 felony.

Section 40.

(a) ExceptThe asprovisions otherwiseof providedthis byAct law,shall anyapply provisiononly ofto a10300SB2041sam001 contract-13- purportingLRB103 to30684 waiveSPS rights58091 undera thiscontracts Acttaking iseffect voidafter asthe againsteffective publicdate policy.of this Act.

(b) TheExcept provisionsas ofotherwise thisprovided Actby arelaw, intendedany toprovision supplement,of anda docontract notpurporting diminishto orwaive replace,rights anyunder otherthis basisAct ofis liability,void remedy,as oragainst requirementpublic establishedpolicy. by statute or common law.

(c) FailureThe toprovisions complyof with this SectionAct doesare notintended renderto anysupplement, contract between a hiring party and ado freelancenot workerdiminish void in total, voidable, or otherwisereplace, impair any obligation,other claim,basis orof rightliability, relatedremedy, toor therequirement contract,established norby doesstatute it constitute a defense to any action or proceedingcommon tolaw. enforce, or for breach of, such contract.

(d) NoFailure provisionto ofcomply with this ActSection relatingdoes tonot freelancerender workersany shallcontract bebetween construeda ascontracting providingentity and a determinationfreelance aboutworker void in total, voidable, or otherwise impair any obligation, claim, or right related to the legalcontract, classificationnor ofdoes it constitute a defense to any suchaction workeror asproceeding anto employeeenforce, or independentfor contractor.breach of, such contract.

Section(e) 45.No provision of this Act relating to freelance workers shall be construed as providing a determination about the legal classification of any such worker as an employee or independent contractor.

Section 40.

Subject to appropriation, the Department may conduct a public awareness campaign,campaign thatregarding shallthis includeAct that, at a minimum, includes making information available on its website, otherwise informing hiringcontracting partiesentities of the provisions of this SB2041 - 11 - LRB103 30684 SPS 57150 b Act, and establishing a means for assistance by a natural person through phone or email.

10300SB2041sam001 -14- LRB103 30684 SPS 58091 a Section 50.45.

One year after the effective date of this Act, and by November 1 every 5 years thereafter, the Department shall submit to the General Assembly and publish on its website a report regarding the effectiveness of this Act at improving freelance contracting and payment practices.

(1) the number of complaints received;received by the Department under this Act;

(2) the value of the contracts disaggregated into ranges of $500 and by the Section of this Act the associated hiringcontracting partyentity is alleged to have violated;

(3) the numbers of responses and non-responses received from contracting entities by the Department disaggregated by contract value into ranges of $500 and by the Section of this Act the associated hiringcontracting partyentity is alleged to have violated;

(d)(4) the numbergeneral sector or occupation of the freelance workers thatsubmitting pursue their claims ofin violationaccordance ofwith this ActAct; through civil action or an alternative dispute resolution process, and a summary of the outcomes, if known;

(4)(5) the generalcounties sectorwhere orviolations occupation of this Act are alleged to have occurred, if in Illinois, including the freelancenumber workersof submittingviolations claimsfrom pursuanteach tocounty, thisidentified Act;by the county where the work was performed;

(5)(6) to the countiesextent whereavailable, violationsdemographic data of thisthe Actfreelance areworkers allegedwho to have occurred,alleged includingviolations the number of violationsthis fromAct; each county;

SB2041and -(7) 12legislative -recommendations as the Director deems 10300SB2041sam001 -15- LRB103 30684 SPS 5715058091 ba (6)appropriate, towhich themay extentinclude available,consideration demographicof datawhether ofcertain theoccupations freelanceshould workersbe whoexempted allegefrom violationsthe scope of thisthe Act;definition of freelance worker.

andSection (7)50. legislative recommendations, including consideration of whether certain occupations should be exempted from the scope of the definition of freelance worker.

Section 55.

(a) The Department is authorized to coordinate enforcement efforts under this Act with other agencies and combine claimscomplaints under this Act with claims under other Acts.

(b)Section The55. Department is authorized to enter into agreements with other states to collect unpaid compensation from out-of-state hiring entities and to perform reciprocal services for such states in the State of Illinois.

Section 60.

The Director, or histhe Director's authorized representatives, shall administer and enforce the provisions of this Act.

In order to accomplish the objectives of this Act and to carry out the duties prescribed by this Act, the Director, or histhe Director's authorized representative, shallmay adopt rules necessary to administer and enforce the provisions of this Act,Act. including the procedures that shall be followed for hearings under Section 25.

TheSection adoption,99. amendment, or rescission of rules shall be in conformity with the requirements of the Illinois Administrative Procedure Act.

SB2041 - 13 - LRB103 30684 SPS 57150 b Section 99.

This Act takes effect July 1, 2024.2024.".